Analyzing the Factors that Influence the Entrepreneur Business Performance of Tourism Destination of Kuala Terengganu City Centre, Malaysia

Abstract

Tourism in Terengganu deals with attractions, events, and facilities of special interest to tourists, such as Kuala Terengganu City Centre (KTCC). KTCC is a collaboration project between the Terengganu state government and the East-Cost Economic Region Development (ECERD) agency. This project purposely attracts potential foreign investors and upgrades the community's economy and social well-being in rural dan sub-urban areas in Kuala Terengganu. Therefore, this study analyzes the factors that influence the business performance among Malay micro-entrepreneurs in rural and sub-urban areas of Kuala Terengganu. The study utilized four factors, including entrepreneurial competency, financial literacy, innovation, and technology. In this survey research, non-probability has been chosen by using the purposive sampling methods. The data were collected from Malay micro-entrepreneurs operating their business, including the North and South areas of KTCC. The results showed that entrepreneurial competency and technology factors were significantly affected business performance. Meanwhile, the financial literacy and innovation factors were not significantly affected business performance among Malay micro-entrepreneurs. In general, this study's findings indicated that most Malay entrepreneurs are not concerned about the importance of managing their finance and creating innovative products in the competitive areas. Also, KTCC is a project that can benefit those Malay micro-entrepreneurs who wisely grab the opportunities. Therefore, they need to consider other entrepreneurial factors that can further develop their business performance without relying on the government and other stakeholders.